Chris McGrath/Getty ImagesA sign on the outside of a Chase bank branch October 14, 2009 in New York City.

Citing a staggering increase in filings and voicing fears of incorrect applications, New Jersey’s top justice announced a series of initiatives yesterday designed to combat rogue foreclosure filings.

"It’s our hope that these three steps will provide greater confidence" in the foreclosure process, Chief Justice Stuart Rabner said in a conference call with reporters. "It is important the judiciary ensures that judges are not rubber-stamping questionable documents that may not be reliable."

This practice of quickly pushing through documents is known as "robo-signing," and refers to mortgage lenders and servicer employees who sign hundreds, if not thousands, of affidavits that are submitted in support of foreclosure claims but without any personal knowledge of the information included in the application.

This year, there were more than 65,000 applications filed statewide, up from nearly 22,000 four years ago. And the vast majority of foreclosure actions — 94 percent — are uncontested, Rabner said.

The judge ordered six mortgage lenders, including Bank of America, JP Morgan Chase and Citibank, to file to the court by Jan. 19 documents proving their internal foreclosure application processes are up to standards, or the applications will be suspended. The other companies are the mortgage divisions of Wells Fargo, OneWest Bank and Ally Financial. These six companies account for more than 40 percent of all mortgage applications filed with the state.

Rabner appointed General Equity Judge Mary Jacobson, who sits in Trenton, to oversee foreclosure matters in the state.

In addition, 24 lenders and service providers who have filed more than 200 residential mortgage foreclosure actions this year are required to document within 45 days that there are no irregularities in those processes. Those reports must outline how the companies handle, review and verify foreclosure applications to demonstrate the reliability and accuracy of what is submitted to the courts, according to the administrative order.

Retired Superior Court Judge Walter Barisonek has been recalled to temporary judicial service and assigned as a special master for these cases, according to the announcement.

Rabner also sent a letter to the New Jersey Bar Association, reminding lawyers their signatures on foreclosure filings certifies they know what is listed in the paperwork. Filings going forward must include an affidavit the bank’s attorney has communicated with an employee who personally reviewed the foreclosure documents and confirmed its accuracy.

The announcement comes after a report prepared by Legal Services of New Jersey alleged industrywide deficiencies in foreclosure filings, according to court documents.

"The mortgage servicing and foreclosure industry really is rife with this certification without personal knowledge," Melville Miller, president of Legal Services, said in an interview. The group published a 28-page report detailing information found in depositions and testimony about foreclosure proceedings in November, which was presented to Rabner.

"From the best we can tell, at a national level and also in New Jersey, it’s a widespread practice."

Other states have issued similar orders. In October, New York directed attorneys filing residential foreclosure actions to certify they have personally reviewed the documents’ accuracy. And at least four state attorneys general and the attorney general for Washington, D.C., have required certain lenders, including those named in New Jersey, to prove the validity of their residential mortgage foreclosure processes, the order states.

But for people who have already lost their home, the only recourse is to secure an attorney and bring the claim before the court, said Glenn Grant, acting administrative director of the courts.

Messages left with law firms representing the six mortgage companies were not immediately returned.

Mark Rodgers, a spokesman for Citibank told The Record the company has taken steps "to strengthen our processes and added additional resources to ensure foreclosures were being processed correctly." Rodgers continued, "We will review the order and will ensure that we meet the new requirements."

Statehouse Bureau reporter Chris Megerian contributed to this report.
Editor's Note: An earlier version of this story incorrectly referred to lawyers' new responsibilities. They are required to speak with the mortgage lender's employee who personally reviewed the documents. It also has been changed to correctly refer to Rabner as a justice.

The story also incorrectly referred to the practice of robo-signing. It is when employees at mortgage lenders sign foreclosure claims without any personal knowledge of the application's contents.